Welcome to Lucky's Crypto Guide For Beginners, a Steemit based tutorial series geared towards making everything crypto understandable to the average person. My goal is to able to educate anybody to the crypto world, giving them the tools and knowledge needed to successfully trade or invest in cryptocurrencies. All knowledge obtained in this manual is essential to your activities with anything blockchain related, including this platform itself. In this article I am going to explain what a cryptocurrency wallet is and briefly explain how it is used.
WHAT IS A CRYPTOCURRENCY WALLET?
The crypto wallet is the single most essential tool for any individual in the crypto world. The wallet is the hub of your crypto activity in most cases. The wallet is where your equity and assets come and go at your command. The wallet is a place to safely store your cryptocurrency and a place to hold your equity. All of these summarize the cryptocurrency wallet and explain what it is, but this is only the beginning. In this article I am going to briefly discuss and break down the basics on the crypto world's biggest asset and most widely used tool, the crypto wallet!
Much in the same principle as your traditional wallet that you carry in your pocket (or purse), a cryptocurrency wallet is used to store your digital assets, aka cryptocurrency. Unlike your everyday wallet, a crypto wallet in most cases is not a physical object and comes in the form of a well coded application or computer program, called a software wallet. In some cases, individuals purchase a wallet in the form of a flash drive, as seen in the photo above, which is called a hardware wallet. Because the wallets only store information and codes for digital currencies, you never have to worry about running out of space or hypothetically making your wallet so fat it won't close (though the idea sounds lovely). Let me not forget that in some VERY rare cases, a coin holder may keep a paper wallet, physically writing down every single piece of code and information they require, then storing in a safe place. A crypto wallet is an essential portion of the entire crypto world and is the only way to store your various currencies.
Though there are only three main ways in which people store their crypto, there are hundreds of individual crypto wallet types and brands in existence, much like today's traditional wallet. The main concept and function remains the same despite any company's enhancements or additional features. To summarize, a wallet is where one moves their crypto to and stores it. They also utilize the basic coding of the wallet to send and receive additional cryptocurrency, making it a hub for their assets.
To give a quick and basic run down on how a crypto wallet works, I will give a couple of brief examples. To receive currency on their wallet, one would offer their wallet ID to another source, who would then issue a withdraw from their wallet ID that will deposit into you wallet. As stated, each wallet has an ID, so you and others can identify your particular wallet from the millions of others in existence. Note - you will NEVER find a duplicated wallet ID due to the complexity of blockchain technology. One may also receive crypto from other sources, such as mining or "airdrops", which are typically either sent directly to your wallet ID or manually deposited from another wallet to yours.
On the same note, to send money from your wallet to another, you would basically reverse the above mentioned process, with you locating the recipient's wallet ID and issuing a withdraw from your wallet set to deposit into their's. Easy as pie, and pretty fast if I also may add. Unlike credit card transfers, which can take days to clear, crypto transactions resolve typically in no longer than an hour! That's it in a nutshell. These are the basic concepts on using a crypto wallet.
Congratulations, you just learned the beginner's essentials on the cryptocurrency wallet!
That wraps up my brief yet informative beginner's guide entry on crypto wallets. As you can see, these are an essential tool used every single day in the world of crypto, so understanding them is very key. Given the complexity of the crypto wallet, I will be doing a couple more pieces on these which will break down the various forms and applications of wallets, as well as provide insight into what may best suit your individual needs. Thank you for reading this article, please send me anyone you feel may benefit from reading these entries. Knowledge is power and one of the best tools you can utilize in trading! Remember, the more you know, the more you grow!
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